The Alabama Insurance Underwriting Association, often called AIUA, is the residual market for essential property insurance on eligible property in Baldwin and Mobile counties when a private policy cannot be found. It is not a statewide FAIR Plan. Eligible locations must be south of the 31st parallel in those two counties.

AIUA's official About page explains that the association was formed in the early 1970s with the Alabama Department of Insurance and was codified by the legislature in 2008. Its mission is to provide a market for owners of eligible property in Baldwin and Mobile counties to obtain essential insurance when they cannot obtain coverage in the private market. Consumers cannot apply directly. To apply, you have to contact an AIUA authorized agent. An agent does not have binding authority.

Where is property eligible, and what is not written?

The official FAQ states that AIUA does not provide coverage in the entire state. Eligible properties must be in areas south of the 31st parallel in Baldwin and Mobile counties. The association's maps tool is the official way to check a particular address. Property in areas protected by the Coastal Barrier Resources Act is not eligible.

AIUA does not insure vacant or farm property. A structure with pre-existing damage is not eligible, and a structure with outstanding repair requirements that already led to a denial, cancellation, or nonrenewal is not eligible. The association, not the agent, decides whether a property meets its underwriting standards. Mobile homes have published size, tie-down, and installation-certification rules, and they are not eligible for DP-2 replacement cost coverage.

AIUA does not offer liability coverage or loss-assessment coverage. Most property policies, including AIUA policies, do not cover flood. The About page is direct on that point: flood is not covered under most property policies, including AIUA policies, and much of the damage in recent hurricanes was caused by flood, not wind.

What are the official residential limits?

The official FAQ states that the maximum dwelling limit increased from $500,000 to $650,000 effective November 1, 2025, and that the maximum personal property limit increased from $250,000 to $325,000 on the same date. Personal property cannot exceed 50 percent of the dwelling limit. An applicant, insured, or agent cannot simply choose the dwelling limit. AIUA requires the dwelling to be insured to 100 percent of its value, subject to those maximum available limits, as determined by a current replacement cost computation.

When the value of the structure exceeds the maximum association limit, AIUA waives applicable coinsurance requirements and charges premium under a first-loss scale formula. Percentage deductibles in that situation are based on the total insurable value of the structure, not only on the association's maximum limit. Confirm current deductibles, discounts, and limit rules with an authorized agent and the official FAQ, because residual-market rules can change.

There is a $100 minimum premium for both residential and commercial policies. Commercial wind coverage, when eligible, is published as an actual-cash-value wind-only policy, with a maximum of $1,000,000 per building and not more than $3,000,000 at any one insured location.

Does AIUA require flood insurance?

Yes, for properties in flood hazard zones A or V. The official FAQ requires flood coverage in an amount at least equal to the AIUA policy limits or the maximum provided by the National Flood Insurance Program. For condominiums, the named insured still has to maintain that flood policy unless the unit is located above the second level of a multi-level building. Buy flood coverage through the National Flood Insurance Program or a participating private insurer. AIUA's own policy is not that flood policy.

If a property is in a flood zone, the About page also states that AIUA requires flood insurance equal to the fire and wind coverage. Do not wait until a named storm is approaching. AIUA will not issue a policy or process a premium-bearing endorsement when a named storm has been declared within the geographic box published in the FAQ, or when a tropical storm watch or warning has been declared for Baldwin or Mobile County. E-commerce stays closed until 24 hours after the storm dissipates and all watches and warnings have been lifted.

How do claims and cancellations work?

The insured can call 1-866-780-2482 to submit a claim. AIUA recommends that you also tell the servicing agent. Policies are not automatically renewed. A notice of current policy expiration and an offer to rewrite is sent to the agent, insured, and mortgage company, when applicable, before expiration.

AIUA policies may be canceled on a pro-rata basis when coverage is replaced by another company, the property is sold, there is a total loss, or AIUA determines that the property is no longer insurable under its rules, with satisfactory evidence as the FAQ requires. Cancellation for any other reason results in a fully earned, non-refundable premium. The cancellation effective date has to fall within the current policy term.

If you own or are buying property in Baldwin or Mobile County and cannot find a voluntary homeowners or wind policy, talk with a licensed local agent who is authorized by AIUA, confirm the official map, and ask about a separate flood policy before you close or before the current policy expires.

FAQ

Can I apply to AIUA myself?

No. The official FAQ states that consumers cannot apply directly and must contact an AIUA authorized agent. Agents cannot bind coverage.

Does AIUA cover the whole state?

No. Eligible property must be south of the 31st parallel in Baldwin and Mobile counties.

What is the current residential dwelling cap?

The official FAQ states that the maximum dwelling limit is $650,000 and the maximum personal property limit is $325,000, effective November 1, 2025, with personal property not exceeding 50 percent of the dwelling limit.

Does an AIUA policy cover flood or liability?

No. AIUA does not offer liability coverage, and flood is not covered under AIUA policies. Flood insurance is required in zones A or V, as the FAQ describes.

Sources: AIUA About the Association, AIUA Frequently Asked Questions, National Flood Insurance Program, ALDOI Where to Go for Help.

Alabama auto cancellation notice is at least 20 days, or 10 days for nonpayment of premium, under section 27-23-23 and the ALDOI Auto FAQ. After the first 60 days, midterm cancellation is limited to the grounds in section 27-23-21. Those auto rules are not a general individual homeowners nonrenewal statute.

For property insurance, Department of Insurance Rule 482-1-136 requires 120 days' written notice to the named insured, and 150 days' notice to the Commissioner, when an insurer restricts coverage or nonrenews a category or group of existing insureds as that rule defines those terms.

What are the auto cancellation grounds and the first 60 days?

Section 27-23-21, as summarized on ALDOI's Cancellation of Automobile Liability Insurance page, allows cancellation of an automobile liability policy only for listed reasons once the statute applies. Those reasons include nonpayment of premium, material misrepresentation in obtaining the policy, a violation of policy terms, certain failures to disclose accidents, moving violations, or rating information, a false or fraudulent claim, and a failure to maintain a required group membership. They also include specified conditions involving a household driver, such as a license suspension or revocation within 36 months, and specified conditions involving the insured automobile.

The same ALDOI page states that this section does not apply to an automobile liability policy that has been in effect less than 60 days at the time the cancellation notice is mailed or delivered, unless it is a renewal policy. Policy renewal does not waive grounds for cancellation that existed before the renewal effective date. In short, the limited-grounds rule is a post-60-day protection on a policy that is not in its initial non-renewal period.

Section 27-23-23 requires the 20-day or 10-day timing and, unless the reason already accompanies the notice, a statement that the insurer will specify the reason upon written request mailed or delivered by the named insured not less than 15 days before the cancellation effective date. If you receive a notice, read the date, the reason, and that request right, and compare it with the official statute and ALDOI page.

If you cannot replace a cancelled or nonrenewed auto policy in the voluntary market, ALDOI's Where to Go for Help page lists the Alabama Automobile Plan (SR13), 3535 Grandview Parkway, Suite 250, Birmingham, AL 35253, telephone (205) 967-2001. That is the official residual-auto contact published by the department. Ask a licensed local agent how an application to the Plan works, and read the liability limits and any uninsured motorist terms before you accept a policy.

What property notice does Rule 482-1-136 actually require?

Chapter 482-1-136 applies to authorized insurers that provide property insurance in Alabama for residential or commercial properties. It is not a 120-day rule for every individual nonrenewal. The official definitions are narrow:

• A coverage restriction means imposing a wind exclusion or hurricane deductible, or increasing an existing hurricane deductible, where the restriction applies to a category or group of existing insureds at renewal and is not a result of prior claims history.
• A nonrenewal of coverage means the insurer's decision to nonrenew coverage to a category or group of existing insureds based on a desire to reduce exposure to a potential catastrophic event, including a hurricane.

When those defined events occur, the insurer has to give the Commissioner written notice at least 150 days before the effective date, including the types of policies, the restriction or whether entire policies are being nonrenewed, the category or group, the number of policyholders, and the Alabama counties involved. The named insured on a policy receiving a coverage restriction must receive written notice at least 120 days before the renewal date. For a defined nonrenewal of coverage, the named insured must receive written notice at least 120 days before the policy is set to expire.

If your notice is an ordinary individual nonrenewal, do not assume the 120-day rule applies. Read the notice, the policy, and, if the facts match a group restriction or catastrophic nonrenewal, the official rule. For coastal residual coverage, AIUA has its own cancellation and rewrite procedures, which are described on the association's FAQ and are separate from Rule 482-1-136.

What should you do with a notice in hand?

Compare the stated reason with section 27-23-21 for auto, or with the property policy and Rule 482-1-136 if it is a group property action. Check the postmark or delivery date against the 10-day, 20-day, or 120-day period that actually applies. If premium nonpayment is the reason, ask the company for the amount needed to keep the policy in force, if a cure is still available under the notice and the policy.

If the company will not explain the reason, use the written-request right in section 27-23-23 for auto cancellations. If you believe the notice does not follow Alabama insurance law, contact the company first and then use ALDOI's Consumer Complaint Form. ALDOI cannot set the dollar value of a claim or decide fault, but it can review whether the insurer followed the law and the policy.

Do not let a cancellation leave a vehicle uninsured. Operating or registering a vehicle in Alabama without the required liability coverage can lead to a registration suspension and the official $200 or $400 reinstatement fees published by the Department of Revenue.

If you receive an Alabama cancellation or nonrenewal notice, talk with a licensed local agent about replacement coverage, including the Alabama Automobile Plan for auto or an AIUA authorized agent for eligible coastal property, and read the official notice rules that apply to your policy.

FAQ

How much cancellation notice is required on an Alabama auto policy?

Section 27-23-23 and ALDOI's Auto FAQ require at least 20 days' notice, or at least 10 days' notice when the reason is nonpayment of premium.

Do the limited auto cancellation grounds apply in the first 60 days?

ALDOI states that section 27-23-21 does not apply to a policy in effect less than 60 days at the time the notice is mailed or delivered, unless it is a renewal policy.

Does every homeowners nonrenewal require 120 days' notice?

No. Rule 482-1-136's 120-day insured notice and 150-day Commissioner notice apply to defined coverage restrictions and to nonrenewal of a category or group of insureds to reduce catastrophic-event exposure.

Where is Alabama's residual auto market?

ALDOI's help page lists the Alabama Automobile Plan, 3535 Grandview Parkway, Suite 250, Birmingham, AL 35253, at (205) 967-2001.

Sources: ALDOI Cancellation of Automobile Liability Insurance, ALDOI Automobile Insurance FAQs, Code of Alabama section 27-23-23, Alabama Insurance Regulation 482-1-136, ALDOI Where to Go for Help, Alabama Department of Revenue Mandatory Liability Insurance.

Alabama's minimum auto liability limits are 25/50/25: $25,000 bodily injury per person, $50,000 per accident, and $25,000 property damage per accident. The Alabama Department of Insurance and the Department of Revenue both publish those figures. Liability coverage is mandatory to operate or register a vehicle.

The official Auto FAQ from the Alabama Department of Insurance (ALDOI) states the minimum limits in exactly that 25/50/25 form. The Department of Revenue's Mandatory Liability Insurance page reaches the same numbers and ties them to section 32-7-6 of the Code of Alabama. The policy has to be an Alabama policy issued by a company qualified to write motor vehicle liability insurance in the state. A policy written only for another state does not meet the registration rule.

What does mandatory liability insurance require?

Sections 32-7A-1 through 32-7A-7 and 32-7B-1 through 32-7B-7 are the authority cited on the official Mandatory Liability Insurance page. No person may operate, register, or maintain registration of a motor vehicle designed for a public highway, and no owner may permit another person to do so, unless the vehicle is covered by a liability insurance policy, a commercial automobile liability policy, a motor vehicle liability bond, or a cash deposit. The liability policy must provide the 25/50/25 minimums in accordance with section 32-7-6.

When you register or renew a plate, license-plate officials try to verify Alabama liability insurance through the State of Alabama Online Insurance Verification System. If the system cannot confirm coverage, the owner has to provide evidence of an Alabama policy. The insurance card is the most common proof. Military members and spouses who are Alabama residents stationed outside the state may have a limited exemption under section 32-7A-5 if they provide orders and proof of liability insurance from the current state of residence, as the Revenue page explains.

What happens if a vehicle is uninsured?

If the department determines that a vehicle was not insured in accordance with the mandatory liability law, it will suspend the motor vehicle registration. The official reinstatement fee is $200 for the first violation, and the owner has to provide proof of current liability insurance. For later violations, the fee is $400. A portion of those fees supports administration of the law, and 15 percent of the net proceeds of reinstatement fees goes to the Alabama Peace Officers' Annuity and Benefit Fund, as authorized by section 36-21-66.

Those figures are registration consequences published by the Department of Revenue. They are separate from any ticket, civil claim, or insurance underwriting decision that may also follow an uninsured accident. If a registration is at risk, contact the local licensing official and the Department of Revenue for the current reinstatement steps.

Is Alabama a no-fault state?

No. ALDOI's State Auto Insurance Laws page lists Alabama among tort states, not among no-fault states, and not among the tort states where personal injury protection is listed as available or required. This batch does not invent a required personal injury protection benefit or a required medical-payments endorsement. Bodily injury liability is the coverage that responds, up to the policy limits, when you are legally responsible for injuries to other people. If you want medical-payments or other optional first-party coverage, ask a licensed local agent what the policy actually offers.

Collision and comprehensive coverage are also optional under the insurance laws described here, unless a lender or lessor requires them in the loan or lease papers. ALDOI's Auto FAQ notes that a lender can require insurance that protects its interest in the vehicle and, if the borrower does not keep that coverage, may secure coverage and charge for it. Those force-placed premiums are often higher than coverage you buy yourself.

How do the 25/50/25 limits work in a real claim?

The $25,000 per-person bodily injury limit is the most the liability coverage would pay for one injured person under the minimum policy. The $50,000 per-accident bodily injury limit is the most it would pay for all injured people in that accident. The $25,000 property damage limit is the most it would pay for damage to other people's property. If a judgment or settlement is larger than those figures, the at-fault driver can still be personally responsible for the difference.

Because Alabama is a tort state, the injured person generally looks to the at-fault driver's liability coverage first. Your own collision coverage, if you bought it, can repair or total your vehicle under your policy, and the insurer may then pursue the at-fault party. ALDOI's Auto FAQ also discusses deductibles, total-loss valuation, and aftermarket parts. When damage equals or is greater than 75 percent of the vehicle's value, the vehicle can be considered a total loss under section 32-8-87(d), according to that FAQ.

Minimum limits are a legal floor, not a measure of what a serious injury or a newer vehicle can cost. If you want higher liability limits, uninsured motorist coverage, or physical-damage coverage, talk through the options with a licensed local agent and read the policy forms before you buy or renew.

FAQ

What are Alabama's minimum auto liability limits?

They are commonly written as 25/50/25: $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage per accident, as published by ALDOI and the Department of Revenue and tied to section 32-7-6.

Does the policy have to be an Alabama policy?

Yes. The official Mandatory Liability Insurance page requires an Alabama policy issued by a company qualified to issue motor vehicle liability insurance in Alabama.

What is the registration reinstatement fee after an insurance lapse?

The Department of Revenue publishes a $200 reinstatement fee for the first violation and $400 for later violations, plus proof of current liability insurance.

Is personal injury protection required in Alabama?

ALDOI lists Alabama as a tort state, not a no-fault state, and does not list personal injury protection as required there. Do not assume a PIP benefit exists unless it is written in your policy.

Sources: ALDOI Automobile Insurance FAQs, ALDOI State Auto Insurance Laws, Alabama Department of Revenue Mandatory Liability Insurance, Code of Alabama section 32-7-6.

A standard homeowners policy in Alabama does not cover flood damage. The Alabama Insurance Underwriting Association states that flood is not covered under most property policies, including AIUA policies, and that much of the damage in recent hurricanes was caused by flood, not wind. Separate flood insurance is the coverage that responds to that kind of loss.

The official place to learn about federal flood insurance is FloodSmart.gov, the consumer site for the National Flood Insurance Program. A flood policy can be written through the NFIP or, in some cases, through a participating private insurer. It is not automatically included when you buy an auto or homeowners policy, and it is not created by comprehensive coverage on a car. Each contract has to be read on its own.

Why does this matter in Alabama?

Coastal and river flooding, tropical systems, and heavy rainfall can all produce water damage that a homeowners policy treats as flood. Wind and flood are different perils. A residual AIUA policy may respond to covered wind damage on eligible property in Baldwin and Mobile counties south of the 31st parallel, but it will not pay a flood loss. If you are shopping only for a wind or homeowners quote, ask in writing whether flood is excluded and how the policy defines water damage, storm surge, and overflow of a body of water.

For property in flood hazard zones A or V, AIUA requires the insured to carry flood coverage at least equal to the AIUA policy limits or the maximum provided by the National Flood Insurance Program. That requirement does not convert the AIUA policy into a flood policy. It is a condition that a separate flood policy be in place. For condominiums, the named insured still has to maintain that flood coverage unless the unit is above the second level of a multi-level building, according to the official AIUA FAQ.

Lenders that hold a mortgage on a property in a mapped flood zone commonly require flood insurance for the life of the loan. Even when a lender does not require it, a flood policy can be the only source of rebuilding funds after high water. Official flood maps and zone determinations belong on FEMA and FloodSmart resources, not on an informal neighborhood description.

What should a flood policy discussion include?

Ask a licensed local agent or an NFIP-participating insurer about:

• The flood zone for the property and whether a current elevation certificate is on file.
• Building coverage and contents coverage as separate limits.
• The waiting period that may apply before a new flood policy takes effect.
• How the policy treats a basement, an enclosure, or a detached structure.
• Whether the community participates in the National Flood Insurance Program.

This article does not invent waiting-period exceptions, basement limits, or premium discounts. Those details belong on the current FloodSmart pages and the policy form. If you are closing on a purchase, build the flood quote and the effective date into the closing calendar so coverage is in force when you take title, subject to any official waiting-period rules that apply.

Auto comprehensive coverage, if you buy it, is also a separate contract. It may cover certain weather-related damage to a vehicle under the auto policy, but it is not homeowners flood insurance and it does not repair a house. ALDOI's auto materials discuss physical-damage claims, total losses, and deductibles for vehicles. Keep the auto claim and the property claim on their own documentation tracks after a storm.

How do residual property rules and storm closures fit in?

If voluntary-market homeowners or wind coverage is not available for eligible property in Baldwin and Mobile counties, an authorized AIUA agent can screen the location on the official map. Do not wait until a named storm is on the forecast. AIUA will not issue a policy or process a premium-bearing endorsement when a named storm has been declared within the area published in its FAQ, or when a tropical storm watch or warning has been declared for Baldwin or Mobile County.

Flood insurance has its own application and waiting-period rules. Starting either application late can leave a gap. If a company nonrenews a group of property policies to reduce catastrophic-event exposure, Alabama Department of Insurance Rule 482-1-136 requires 120 days' written notice to the named insured, as defined in that rule. That notice is a chance to shop for replacement property coverage and to confirm that flood coverage remains in force, but it is not itself a flood policy.

After a loss, photograph the high-water marks, keep receipts, and report the claim to the flood insurer and, if wind damage is also involved, to the property insurer. Do not assume one adjuster is handling both perils. If a company dispute arises on a policy that ALDOI regulates, the department's consumer complaint path is available after you first contact the company.

If you own or are buying an Alabama home, talk with a licensed local agent about a separate flood policy, confirm the official flood zone, and read the homeowners or AIUA exclusions before storm season.

FAQ

Does a standard homeowners policy in Alabama cover flood?

No. Official AIUA materials state that flood is not covered under most property policies, including AIUA policies. Flood insurance is a separate purchase through the NFIP or a participating insurer.

If I have an AIUA policy, do I still need flood insurance?

Yes, if the property is in flood hazard zone A or V. AIUA requires flood coverage at least equal to the AIUA limits or the NFIP maximum. The AIUA policy still does not pay flood losses.

Where do I learn about federal flood insurance?

The official consumer site is FloodSmart.gov, which explains the National Flood Insurance Program and how to find participating insurers and agents.

Can I wait until a storm is named to buy residual wind or flood coverage?

Do not count on that. AIUA closes new business and certain endorsements around published named-storm and watch or warning conditions. Flood policies can also have waiting periods. Start the applications early.

Sources: National Flood Insurance Program, AIUA About the Association, AIUA Frequently Asked Questions, Alabama Insurance Regulation 482-1-136, ALDOI File a Consumer Complaint.

Before you file a request for assistance with the Alabama Department of Insurance, contact the insurance company or producer and try to resolve the issue. If you do not receive a satisfactory response, fill in ALDOI's online Consumer Complaint Form. That sequence is the department's official instruction.

ALDOI can submit your complaint to the company or agent, require a response, review whether the entity followed the policy and insurance law, require corrective action when legal obligations were not met, and help you understand the policy. The department also publishes clear limits on what it cannot do. Knowing both sides of that list will save time when you decide whether a department complaint, a company appeal, or a private legal claim is the next step.

What should a formal complaint include?

The official File a Complaint page asks you to include:

• Your complete name, mailing address, and phone number.
• The full name of the insurance company, agent, agency, or broker involved.
• Your policy number.
• The claim number, if applicable.
• A detailed description of your concerns.

A short, organized timeline helps. Attach the policy declarations, the denial or delay letter, estimates, photographs, and notes from calls, including dates and the names of people you reached. Keep copies of everything you send. If you use the official PDF form instead of the online form, follow the current instructions on the same ALDOI page.

What can ALDOI do, and what can it not do?

ALDOI can send the complaint to the company or insurance professional and require a response. It can review that response against the policy and the law. If it determines that the company or professional did not meet legal obligations, it will require corrective action. It can also help you understand your policy language.

ALDOI states that it cannot provide assistance on your insurance complaint if you have an attorney, provide assistance to medical providers, give legal advice or legal representation, give medical advice, intervene in a pending lawsuit, determine who was negligent or at fault, determine the value of a claim or the amount of money owed to you, determine the facts when there are competing versions of an accident or claim, or help with plans, agents, brokers, or companies that are not subject to Alabama insurance law. If the plan is self-funded and administered by an employer, the department notes that you will need to contact the employer.

Those limits matter in auto and property claims, where people often want the department to set a total-loss value or decide fault. ALDOI's Auto FAQ makes a similar point: the department does not have regulatory authority over the monetary evaluation of your vehicle. A complaint can still be the right tool when a company misses a notice rule, misapplies a coverage term, or fails to respond.

How do I contact the department?

The official page lists the Alabama Department of Insurance, P.O. Box 303351, Montgomery, AL 36130-3351. The published telephone number is 334-241-4141, with hours of 8:00 a.m. to 5:00 p.m. An after-hours number, 334-240-4431, is also listed. Use the current numbers and forms on aldoi.gov rather than a third-party reprint.

If the issue is an auto cancellation, review ALDOI's Cancellation of Automobile Liability Insurance page and sections 27-23-21 and 27-23-23 before you write the complaint, and attach the cancellation notice. If the issue is a coastal residual-market policy, the Alabama Insurance Underwriting Association has its own claims and agent contacts, and ALDOI still regulates the insurance market in which that association operates.

For help finding residual auto coverage, ALDOI's Where to Go for Help page lists the Alabama Automobile Plan in Birmingham. For consumer questions about utilities or household-goods movers, the Public Service Commission's consumer services numbers appear on that same help page, but mover complaints follow the commission's process, not ALDOI's insurance form.

A department complaint is not a lawsuit, and it is not a substitute for paying a premium or meeting a proof-of-loss deadline in the policy. If a statutory deadline, a suit limitation in the policy, or a cancellation effective date is approaching, note those dates in the complaint and consider whether you also need advice from your own representative.

If an Alabama auto or homeowners claim is stalled, talk with a licensed local agent about the policy terms, contact the company in writing, and use ALDOI's official complaint path if the company response is not enough.

FAQ

Do I have to contact the company before I file with ALDOI?

Yes. The official complaint page tells you to contact the insurance company or producer first and to use the Consumer Complaint Form if you do not receive a satisfactory response.

What information does the department want on the form?

Include your name, mailing address, and phone number; the full name of the company or agent; the policy number; the claim number if there is one; and a detailed description of the problem.

Can ALDOI decide the value of my claim or who was at fault?

No. The department's own list states that it cannot determine negligence or fault, or the value of a claim or the amount of money owed to you.

How do I reach ALDOI by mail or phone?

The official address is P.O. Box 303351, Montgomery, AL 36130-3351. The published number is 334-241-4141, 8:00 a.m. to 5:00 p.m., with 334-240-4431 listed for after hours.

Sources: ALDOI File a Consumer Complaint, ALDOI Automobile Insurance FAQs, ALDOI Cancellation of Automobile Liability Insurance, ALDOI Where to Go for Help.

Alabama auto liability policies issued or delivered in the state on vehicles registered or principally garaged here must include uninsured motorist coverage, in the bodily injury limits set out in section 32-7-6, unless the named insured rejects that coverage. Section 32-7-23 is the statute that sets that rule.

Those section 32-7-6 bodily injury limits, as the Department of Revenue and the Alabama Department of Insurance currently publish them, are $25,000 per person and $50,000 per accident. Uninsured motorist coverage is for bodily injury, sickness, disease, or death that the insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle. It is not a substitute for the liability insurance Alabama requires you to carry for other people.

What does the named insured have to do to reject the coverage?

Section 32-7-23 gives the named insured the right to reject uninsured motorist coverage. For a renewal with the same insurer, the statute says the coverage need not be provided unless the named insured requests it in writing, if the named insured had already rejected the coverage on the policy previously issued by that insurer. This article does not invent a particular state-prescribed rejection form beyond that statutory language. If you want to keep, drop, or change the coverage, get the request or rejection in writing and keep a copy with the policy.

Read the declarations page and the uninsured motorist endorsement, not just a quote sheet. Confirm the bodily injury limits, whether more than one vehicle is listed, and whether a rejection is already on file. If the paperwork is unclear, ask the insurer or a licensed local agent to point to the form that records the decision.

What counts as an uninsured motor vehicle?

Section 32-7-23(b) states that the term includes, but is not limited to, motor vehicles with respect to which:

• Neither the owner nor the operator carries bodily injury liability insurance.
• Any applicable policy liability limits for bodily injury are below the minimum required under section 32-7-6.
• The insurer becomes insolvent after the policy is issued, so there is no insurance applicable to, or at the time of, the accident.
• The sum of the limits of liability under all bodily injury liability bonds and insurance policies available to an injured person after an accident is less than the damages the injured person is legally entitled to recover.

That fourth category is the statute's underinsured situation. In other words, the official definition is broader than a driver who has no liability policy at all. It can also reach a driver whose liability limits are below Alabama's minimum, a driver whose insurer has become insolvent, and a driver whose available bodily injury limits are less than the injured person's legally recoverable damages.

The statute does not, in the text quoted here, create a separate optional underinsured motorist form that an insurer must offer in addition to uninsured motorist coverage. What it does is define "uninsured motor vehicle" to include that underinsured comparison. Ask your agent how your particular policy applies the statute, including any policy language about credits, offsets, or consent to settle, and do not treat a blog summary as a substitute for the form.

Is there a limit on how much can be recovered under one contract?

Yes. Section 32-7-23(c) limits recovery by an injured person under the uninsured provisions of any one automobile insurance contract to the primary coverage plus such additional coverage as may be provided for additional vehicles, but not to exceed two additional coverages within that contract. If you insure several vehicles on one policy, that statutory cap is part of the analysis. It is not a reason to ignore the coverage; it is a reason to read how the policy and the statute interact.

Uninsured motorist coverage is first-party coverage that responds when the other driver is uninsured or, as defined above, underinsured. It does not pay for damage to the other driver's property, and it is not the same thing as collision coverage on your own vehicle. Collision, if you buy it, follows the contract for damage to your vehicle after an accident, subject to the deductible.

How does this fit with Alabama's 25/50/25 liability requirement?

The mandatory liability law still requires an Alabama liability policy with 25/50/25 minimums to operate or register a vehicle. Uninsured motorist coverage sits alongside that liability coverage unless it is rejected. Raising liability limits does not automatically change uninsured motorist limits unless the policy is written that way, and the statute's default tie is to the limits in section 32-7-6(c). If you want higher uninsured motorist limits, ask whether the insurer will write them and get the answer in the policy.

If you cannot find a voluntary-market policy, ALDOI's consumer help page lists the Alabama Automobile Plan as a residual-market contact. Residual-market coverage still deserves a close reading of the liability and uninsured motorist terms before you accept it.

If you are buying or renewing an Alabama auto policy, talk with a licensed local agent about uninsured motorist coverage, confirm whether a rejection is already on file, and keep written records of the choice you make.

FAQ

Is uninsured motorist coverage required on an Alabama auto policy?

Section 32-7-23 requires it in auto liability policies issued or delivered in Alabama on vehicles registered or principally garaged here, unless the named insured rejects the coverage.

Does the statute include underinsured drivers?

Yes. An uninsured motor vehicle includes a situation in which the available bodily injury liability limits are less than the damages the injured person is legally entitled to recover, as well as cases with no coverage, sub-minimum limits, or insurer insolvency.

What happens on a renewal after a prior rejection?

Unless the named insured requests the coverage in writing, it need not be provided on a renewal policy with the same insurer after a prior rejection, under section 32-7-23(a).

Can I stack uninsured motorist coverage on several vehicles in one policy?

Recovery under the uninsured provisions of any one contract is limited to the primary coverage plus coverage for additional vehicles, not to exceed two additional coverages within that contract, under section 32-7-23(c).

Sources: Code of Alabama section 32-7-23, Code of Alabama section 32-7-6, Alabama Department of Revenue Mandatory Liability Insurance, ALDOI Automobile Insurance FAQs, ALDOI Where to Go for Help.